5 years ago
Tuesday, September 21, 2010
Out on a limb
I don't like going out on a limb so close to an obvious manipulation level, but I'm showing negative divergences in all 3 majors not including the IWM as it's taking forever to load. However AAPL is showing some too so... there it is.
15 comments:
My radar is questioning the timing of the negative divergence so far in advance of the FED release. Unless they are making a last digit effort to short prior to the release and expect a big move down. The other option I don't like to think of, but entails them driving price lower now to accumulate for the pop later when we get a market reaction. What would be a good reversal point to take some risk to the downside should it happen.
Brandt, GDX and GDXJ breaking down. Can you update us on GLD and SLV? Looks like the rally is over for all of these.
Glad I bought puts on GDXJ yesterday. Had a feeling.
Jack, we are going to take 1/3 of shorts and put them in ultra longs should the market move higher then yesterday. Then we'll wait to see if the Fed reaction is reversed as it almost always is, but who knows now?
I'm personally going through the entire Russ 2k looking more at individual stocks, not market related just in case this POMO thing is real-meaning really being injected into the market.
There may be a bounce intraday brewing in GLD, but Ihave been bearish on GLD for awhile and called the recent breakout a set up for a decline. Much like my market view, unless proven otherwise. I like the GLD short, just use risk management.
Please take a look at stocks with High Beta's as there has been some rumor that they are encouraged to target these. Some as high as 4+. Would this mean that your radar is now also alarmed?
Brandt,
It seems to me that decideing now to reverse a 1/3 short position and go long at over bought levels seems to be a emotional statement given longer term C3 posts you have shown leading down. I wonder why you would have not reversed pos at oversold levels when C3 was showing the bounce in late Aug. To do it now seems emotional rather than rational. Maybe I am missing something?
Alesund -bounce in GLD coming as it hit it's first support level.
Q.S. when I say "we" I'm talking about the 2 people I advise -not we as in here. They are completely short the market-not stocks, but the market and a new high will let us hedge that risk a bit until we see what the Fed reaction is, many times it is reversed in the first 2-3 days, that is why we are not closing all positions, just enough to hedge as his risk is purely market-not stocks.
He is also, against my recommendations, way over leveraged with regard to his risk management.
10-4
Jack, high beta is always in my scan. Whether you buy a utility (safe stock) or a stock with a beta of 4, your money is in the market, it is at risk, even if it's a9/11 type event. So as long as risk management is used, I want to get the most bang for my buck if I'm going to put my money at risk
Thanks for taking a look.
I am seeing a rising trendline into overhead resistence in TZA. Is 3C showing accumulation into this? I would hope so, but need the confirmation. Thanks.
Looks to be in FAZ and EDZ as well.
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